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The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 400,000 Goodwill 400,000 Deferred charges 100,000 90,000 Notes Payable, Trade 100,000 610,000 150,000 Accounts Payable, Trade 790,000 Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 40,000 60,000 2,500,000 2,250,000 500,000 500,000 1,500,000 250,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.

The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 400,000 Goodwill 400,000 Deferred charges 100,000 90,000 Notes Payable, Trade 100,000 610,000 150,000 Accounts Payable, Trade 790,000 Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 40,000 60,000 2,500,000 2,250,000 500,000 500,000 1,500,000 250,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...
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The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 Goodwill 400,000 400,000 Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par 100,000 90,000 100,000 150,000 610,000 790,000 60,000 2,250,000 40,000 2,500,000 500,000 500,000 1,500,000 Ordinary Shares, P10 par Retained Earnings 1,500,000 250,000 523,000 2020 Income Statement Accounts Sales 5,250,000 Sales Returns and Allowances 250,000 Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 500,000 750,000 2,750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
Transcribed Image Text:The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 Goodwill 400,000 400,000 Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par 100,000 90,000 100,000 150,000 610,000 790,000 60,000 2,250,000 40,000 2,500,000 500,000 500,000 1,500,000 Ordinary Shares, P10 par Retained Earnings 1,500,000 250,000 523,000 2020 Income Statement Accounts Sales 5,250,000 Sales Returns and Allowances 250,000 Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 500,000 750,000 2,750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
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